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Adams Manufacturing Company was started on January 1, Year 1, when it acquired $87,000 cash by issuing common stock. Adams immediately purchased office furniture and
Adams Manufacturing Company was started on January 1, Year 1, when it acquired $87,000 cash by issuing common stock. Adams immediately purchased office furniture and manufacturing equipment costing $7,700 and $34,300, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,100 salvage value and an expected useful life of four years. The company paid $11,300 for salaries of administrative personnel and $15,500 for wages to production personnel. Finally, the company paid $9,040 for raw materials that were used to make inventory. All inventory was started and completed
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